Gerry’s Insights Borders to Booze Keep Blurring

Everybody Get Together!

The other day, at my local craft beer bottle shop, I found the

end of happy hour converging terrifyingly with the deadline for my BevNet Magazine column. The question plaguing me as I’d entered the premises a couple of hours earlier remained unanswered: What to write about? It was even more pressing now that I’d procrastinated my way into the higher-priced phase of the evening and my dawdling was depleting my wallet of a dollar more a draft. Aha! Convergence!

In truth, that would be a topic better addressed at the beginning not the end of a happy hour, given the bewildering web of alliances being forged between alcohol and non-alcohol giants as the long-predicted convergence of those separate empires fi nally seems to be occurring. (Disclosure: my colleagues at Beer Marketer’s Insights and I launched my newsletter Beverage Business Insights partly out of a conviction that convergence was just around the corner. That was 19 years ago.) In many cases, these alliances are fairly straightforward deals wherein an alcohol player makes and distributes a hard version of a non-alcoholic brand, say, Molson Coors doing a beerifi ed take on AriZona Iced Tea’s Arnold Palmer or a cervezafi ed version of Coca-Cola’s Topo Chico. In journalists’ terminology, those might rate as run-of-the-mill “dog bites man” deals, except that their sheer proliferation makes them confusing: AriZona has also teamed up with Heineken for a hard seltzer called SunRise; Coke just threw its lot in with Constellation for an alcoholic Fresca; that prompted Molson Coors to plaintively reveal that Coke’s got another brand in the hopper at MC, too.

The man-bites-dog anomaly? That would have to be Pepsi’s deal with Boston Beer to itself distribute the Hard Mtn Dew upon which the two companies are collaborating, an initiative that requires Pepsi to navigate an exhausting array of bureaucratic hurdles in every state in which it plans to do business, even as it’s left Boston Beer trying to placate a wholesaler network that is furious that a key supplier would betray them by setting up a new competitor in the middle tier. (Boston Beer’s response: With or without its help, wholesalers gonna wholesale. I’m paraphrasing.)

It’s a big pack for sure, and we could be forgiven for viewing these companies as playing some kind of three-dimensional chess? As a guy who hasn’t yet graduated from Yahtzee, I’ve wondered, for instance, whether Coke’s successive alliances might be aimed at cluttering potential exit routes of its energy drink partner Monster should Monster decide someday to fl ee the relationship now that it seems clear KO doesn’t represent its ultimate exit. After all, Coke announced the Fresca deal not long after word leaked out that Monster was talking to Constellation about an alliance. OK, maybe, though Coke higher-ups I’ve encountered have never struck me as particularly Rasputin-ish.

I suspect instead Coke and its peers are just experimenting, getting in the game to see where things go. If not 3D chess, it’s still not a terrible way to proceed for companies trying to be agile and ready to pivot in disruptive times, as the buzzwords dictate these days.

Still, for all the ink they’re getting now, most of those alliances could prove tenuous, not surviving the fate of the particular brands they’re putting into place. But I’d argue that the boldest move so far has been Monster Beverage’s acquisition of the CanArchy collective of craft beers, announced just as I was writing this column. After all, here’s a beverage company plunking down hard cash for a presumably permanent seat at the table in the beer and hard seltzer businesses. So what’s afoot there?

The Monster/CanArchy deal bears some resemblances to PepsiCo’s acquisition of Rockstar Energy a couple of years ago. Both represent less a move on coveted brands than attempts to clear obstacles in the path of playing in a promising sector with other brands. In Pepsi’s case, the deal enabled it to void a highly restrictive Rockstar contract that made it diffi cult to play in the energy category under Pepsi’s own Pepsi-Cola or Mountain Dew brands, or to create others via internal development, acquisition or other means – like the Bang Energy distribution deal it promptly inked.

In Monster’s case, as the company was explicit in pointing out, CanArchy provides the infrastructure in licenses, brewing capacity and an established distribution network for Monster to move forward, including with its own alcoholic entries. Some of these are well along in development. So while I have no doubt Monster intends to do well by CanArchy brands like Oskar Blues, Cigar City and Deep Ellum, they’re not the real focus of the deal. Of course, with the $330 million price Monster paid for CanArchy is slightly less than the net income the company reported in its third quarter – if the CanArchy brands evaporated overnight, it’s not like investors would particularly notice. In contrast to PepsiCo’s $4.1 billion pricetag for RockStar, Monster’s deal is nearly risk-free. And it by no means precludes a broader deal with one of the alcoholic powerhouses down the line. The company retains great optionality, as the Wall Street guys like to say.

There’s another side of this trend, too, of course: the alcohol players moving to play in non-alcoholic beverage spaces. That one’s not quite as interesting because there are fewer legal and logistical impediments to alcohol players’ efforts to participate in non-alcoholic segments. So the forays of the alc players into that area can seem more off the cuff: they pick up a brand here or there, through alliance, investment or outright acquisition. As for their distribution networks, those have long carried NA brands, albeit with greatly varying degrees of commitment and consistency. That said, several of them seem serious this time. Its corporate identity now rebranded as Molson Coors Beverage, that beer giant is focused on attaining meaningful scale with Zoa Energy and La Colombe Coffee but it’s got a fl ock of other brands at various stages of incubation. AnheuserBusch is running mainly with Ghost Energy and Super Coffee, but its Zx Ventures arm has taken a piece of a broad array of plays, many of them not remotely ready for Bud Light trucks. Constellation is working with BioSteel, Karma and Hop WTR. That’s not to even mention their dalliances on the CBD side. And another form of convergence – the boom in alcohol-alternatives – seems certain to accelerate their moves into NA plays that function convincingly for those occasions.

But the more epochal shift will be the soft drink giants and their bottlers offering both NAs and alcohol. Those with a more global perspective, of course, will wonder why that should be such a stretch. After all, in many parts of the world, soft drink bottlers – including Coke’s and Pepsi’s – have long mingled alcs and non-alcs on their trucks. So maybe what we’re seeing now was inevitable all along, only a matter of time before the U.S. clambers aboard. Kind of like us getting serious about soccer, y’know?

It would be nice to conclude by reporting that my fi nal beer of the evening was a Harmonic Convergence. (Burlington Beer, Garage Project and Crooked Run have all done one.) Not on tap, alas. So I’ll leave you with this: As exciting as it is to watch this great convergence unspool, it may well end up as a zero-sum game, not the solution to the growth dilemmas of all these beverage giants, kind of an agreement between farmers letting herds freely stray into their neighbor’s pasturages. But the efforts may yield some fascinating new brands and sub-segments in the process in this ever-morphing beverage space.

BevNET Live Recap

After a two year wait, BevNET Live Winter 2021 returned in December in Santa Monica, Calif. with a full slate of programming looking at how the beverage industry is moving ahead amid changes from the pandemic, increased participation from celebrity investors, rising health and sustainability trends and the impact of ecommerce and internet market.

On December 6, the two-day event kicked off with a panel bringing together a range of experienced experts and operators to more closely examine the current state of the beverage business, taking into account the disruptive conditions of the last two years.

For investors like Mark Rampolla, founder of ZICO and cofounder and managing partner at PowerPlant Ventures, the ability of beverage startup founders and their teams to be prepared to tackle problems and “ride out” difficult periods has become a critical asset. “More than ever, we are looking for founders and teams,” he said, that can handle the “unbelievably complex” business environment. However, those that do manage to emerge from the early growth stage may find themselves with an “open field” to continue scaling, as many will not.

The widely reported issues related to supply chain gridlock, material shortages and labor scarcity have recalibrated the metrics used to evaluate a brand’s progress, according to Nick Giannuzzi, managing partner at The Giannuzzi Group. “These are brand new issues,” he said, but at the same time there is “more money, more creativity, more great ideas” circulating through the industry, and that judging brands strictly on their performance during the pandemic is missing the bigger picture of what they bring to the table.

Along with leadership, the panelists noted that profitability is another key focus within the beverage business, which arguably wasn’t the case several years ago. Nicole Dawes, CEO and founder of Nixie Sparkling Water, implored entrepreneurs to prioritize “building a solid business” that is profitable, while Brian Barr, account executive at DPI Specialty Foods, emphasized the importance of setting long-term and short-term goals. With so many brands competing for space, Barr said trends like immunity and functional drinks have seen particular rise in consumer interest.

Speaking from his experience in guiding the brand for a decade, Eddie Simeon, co-Founder and CMO of Hella Cocktail Co., made the case for growing slowly (and profitably) rather than chasing riskier bets for short-term gain. Reflecting on her own long journey in building snack brand Late July before launching Nixie, Dawes noted how core values and beliefs can help guide companies through fallow periods.

“When you are an organic brand or doing other things that require more capital, you have to be realistic about that and know it’s part of your mission and part of who you are, and build that in,” she told the audience at the Loews Santa Monica Hotel.

Also on day one of BevNET Live Winter 2021, Sarah Frey, CEO of Frey Farms, discussed her personal journey in building

an agricultural power brand, and how initial setbacks and challenges infl uenced her approach to brand building, negotiating with partners and building an effective team.

As well, a presentation by Nik Sharma, CEO of Sharma Brands, focused on how beverage brands can grow smart in D2C and arm themselves with the right knowledge and tactics as they scale. Stepping outside the strictly beverage space, BevNET editor-in-chief Jeff Klineman sat down with founder/ investor Shaun Neff (Neff, Orro, Sun Bum, Pattern, Beis, Moon, and Beach House) to break down effective ways to work with celebrities and infl uencers to create awareness and gain attention organically, and how engaging brands can distinguish themselves within crowded categories.

Day two of the event kicked off with another look at how the industry has changed since 2020, this time with a panel featuring members of The Coca-Cola Company’s New Revenue Streams group.

Daniel White, Chief of New Revenue Streams at Coke, described how Coke has shifted its core focus away from “Brands” and towards “Businesses” over the past two years. Until recently, Coke’s Venturing and Emerging Brands (VEB) unit had been focused on “fi nding the next billion dollar brand,” but today that idea is outdated and the industry has room for a broader array of companies to meet a larger, more diverse beverage market.

“Today it’s about fi nding the right model for the right brand,” White said, describing the new way of thinking as a transition from venture capital (i.e. investing and scaling brands) to private equity, where each brand and category needs to be met on its own terms.

Turning to Coke’s immediate interests, White highlighted fi ve new revenue streams the company is focused on, including alcoholic drinks, the Topo Chico brand, coffee, mixers, and new packaging formats built around home use.

“The world is more open than ever, whether we like it or not,” he said. “Closed systems are diffi cult to build and diffi cult to protect.”

In regards to alcohol, White said that Coke is entering the space carefully, but at the same time very little is off the table — including potential line extensions from core brands. Though it didn’t come up during the panel, the move would follow in the path of PepsiCo, which announced this year it has partnered with Boston Beer Company for the launch of a Hard MTN Dew line.

Other highlights from the second day included Cliff Morgan, founder and CEO of G Fuel, who sat down to discuss how he built a thriving energy drink brand by honing in on the gaming community and a pandel with Nutpods CEO Madeline Haydon and United Sodas of America CEO Marisa Zupan, who both started their businesses as direct-to-consumer brands, and talked about the need to make the leap to brick-and-mortar retail and how they approached becoming omnichannel companies.

The second day started to wind down with Brian Kelly, the chairman and CEO of PearlRock Partners, who delivered a presentation drawing from his experiences scaling Keurig to share how beverage brands can best meet the demands of their investors, their retailers and their consumers.

Finally, the conference concluded with a panel looking towards the future of beverage investment, featuring Redbud Brands founder Brian Goldberg, Supply Change Capital managing partner Noramay Cadena and Cambridge SPG managing partner and COO Filipp Chebotarev. The trio dove into the current trends in fi nancing and where valuations and deal-making are headed in the near future.

The Importance of Scrappiness and Storytelling: NOSH Live 2021 Recap

After an evolutionary year of changing trends and consumer shopping habits, natural food industry leaders converged in Santa Monica in December for NOSH Live Winter 2021 to discuss the state of the industry and outline a vision for the path forward.

Erewhon chief growth offi cer Kabir Jain, CAULIPOWER founder and CEO Gail Becker, Country Archer Provisions cofounder and CEO Eugene Kang and Loft Growth Partners Liz Myslik kicked off the fi rst day with a wide-ranging discussion on how retailers, investors and entrepreneurs have been impacted by a challenging market environment over the past year.

Supply chain disruption has continued to weigh on companies large and small. Despite brands’ best efforts to establish solid products and marketing plans, these supply chain issues have put a “tremendous strain” on industry members, Becker said. These challenges have created a “ripple effect” across not only brands, but also retailers due to shortages and out-of-stock issues. According to Myslik, brands are now more focused than ever on supply, which ultimately presents an opportunity to establish a stronger supply chain that will make brands better overall.

Trying to maintain stability within this volatile market is no easy feat, Kang admitted, but the ability to control your business’ “controllables” is key. This includes building strong lines of communication with retailers and other partners across the supply chain and having honest and transparent conversations, which Kang described as “eye-opening” for Country Archer.

As consumers migrated to D2C shopping during the pandemic, brands and retailers were forced to evolve to meet their needs with an omnichannel presence. Now consumers have returned to stores and retailers are adapting to the types of products consumers want and how they want to buy them, Myslik said.

Later in the day, The Hartman Group CEO Laurie Demerritt examined how food companies can use brand attributes and mission to establish loyal consumer bases as many macro and micro cultural forces are interplaying and affecting consumer choices.

Closing out the day, natural products retailer Earth Fare took to the stage to discuss its whirlwind year in 2020. After announcing it would close due to fi nancial challenges the grocer ultimately reopened later in the year.

At this time, Gavin Konkel, VP of center store merchandising at Earth Fare, said the natural retailer decided to take what was working the best within the store, adopting an entrepreneurial spirit to maximize opportunities. Earth Fare took this new opportunity to establish a new vision and strategy around its “food philosophy,” enhancing its merchandising standard and evaluating overexposed categories — diving deeper into functional foods and pulling back in segments such as yogurt.

As Earth Fare evolves, Konkel said brands looking to land on its shelves or any other grocery shelves need to see if their product is a fi t by getting to know a retailer, which will ultimately help them sell to buyers. Konkel noted that “getting in is easier than staying in” so establishing strong relationships with buyers is essential.

Day two of NOSH Live Winter 2021 brought discussions on how brands can position themselves for success with regards to the current state of the industry including shifting consumer interests and a dynamic landscape for brand building.

Acid League co-founders Allan Mai and Cole Pearsall and Chrisitina Pearson, Global Category Manager at Whole Foods, took to the stage announcing Acid League will be launching 12 new sauces and condiments with the retailer early on in the new year. The new products include everything from an 1860s cocktail sauce to a modern take on ketchup. In tandem with the new product announcement, the trio also discussed how they have navigated their brand-retailer partnership and how a sense of positivity, clear and consistent communication and a willingness to compromise allowed this partnership to grow and thrive.

According to Pearsall, Whole Foods essentially serves as the company’s “testing ground” for new products, noting that launching exclusives with the retailer has given them valuable data and proof of concept within the category. By launching these exclusives, Pearsall said they have elevated the brand’s other retail partnerships because they are able to pitch new products with a sense of confi dence, data and a solid proof of concept behind its more unique innovations.

However, the relationship isn’t one sided. Pearson emphasized that for Whole Foods, Acid League’s in-house operations brings a sense of stability to the shelf, especially over the course of the past year where manufacturing disruptions impacted every category. She highlighted the company’s ability for the most part to avoid out-of-stocks and, when they couldn’t, easily communicate that production might be strained.

Another highlight from day two included Ashley Alden, VP of Merchandising at Foxtrot sitting down with NOSH editor Carol Ortenberg to discuss how the company is modernizing the approach to the traditional corner store through an innovative retail and delivery format catering to all-day use occasions and the contemporary consumer.

The brick-and-mortar Foxtrot locations offer a typical retail experience with an data-curated array of products on shelf. In addition to retail, the store also has a food service component, “transitioning from coffee shops to a wine bar throughout the day” said Alden. This brings in consumers who may just want to grab a cup of coffee to then discover the wider variety of services this modern c-store has to offer. The stores also serve as “micro-fulfi llment centers” enabling Foxtrot to deliver products across its CPG and foodservice portfolios in under an hour.

However, when it comes to growth, Alden believes it is Foxtrot’s relationship with its brands and consumers that allowed the company to expand at such a rapid pace. She emphasized the company’s “commitment to community” and highlighted how the retailer has also taken an active role in shaping local brands so they would be positioned for success once they reach the shelf.

Currently Foxtrot operates 15 retail locations in cities including Chicago, Washington D.C. and Dallas and over the next year, 50 new Foxtrot locations are set to pop up in cities such as New York, Los Angeles and Boston. Alongside this expansion Alden said it’s close-knit team, which currently includes only three category managers responsible for bringing in and managing brands, will also undergo a signifi cant expansion.

Brewbound Live Peers Into the Future of Beer and Beyond

The Brewbound Live business conference in December focused on the future of the beer category and the increasing convergence between alcoholic and non-alcoholic beverages.

Firestone Walker co-founder David Walker opened the conference with a discussion on what it means to be an American craft brewery as the industry morphs and evolves. Craft brewers have taken some lumps over the last few years, but Walker has nevertheless remained bullish on craft with the Paso Robles, California-headquartered craft brewery aiming for 600,000 barrels in 2022 on the way to 1 million barrels down the road.

Also bullish on craft beer is Kirin-owned Lion Little World Beverages, which now has more than 1.5 million barrels of production at its disposal between its acquisitions of New Belgium Brewing in Fort Collins, Colorado, and Bell’s Brewery in Kalamazoo, Michigan.

New Belgium CEO Steve Fechheimer and Bell’s Brewery EVP Carrie Yunker wrapped up Day One of the conference on what comes next, following founder Larry Bell selling Bell’s to Lion.

Along with detailing goals for the new partnership, Yunker and Fechheimer eased some concerns that the Michigan-based craft brewery will lose its identity with the acquisition, and the retirement of Larry Bell.

“I’ve been doing a lot of work with Steve and the team over the last several months, and I don’t feel like the smaller brewery,” Yunker said. “My voice is just as big in the room as them and they’re great leaders and I think really our job is to be bullish about making sure we protect the things that matter to our people.”

Meanwhile, Athletic Brewing Company co-founder and CEO Bill Shufelt discussed the evolution of non-alcoholic (NA) beer – and the strategies the Stratford, Connecticut-based brewery has used to become a leader in the segment.

Athletic launched in 2018, and has grown to claim about 50% of the NA craft beer segment by “taking something that was so long neglected and bringing it out of the penalty box,” according to Shufelt.

“The word sober – and these binary words are so outdated – 80% of our customers drink alcohol at other times during the week,” he said. “We really think non-alcoholic in all its forms, not only beer, is the fi rst credible occasion growth driver in adult beverages that we’ve had in decades.”

Rather than “cannibalizing the other offerings” in beer, Shufelt said the non-alc segment provides a beer option for the days where alcoholic beverages might not fi t.

“Now, we have a beer you can drink Sunday through Thursday and absolutely love and be psyched to pair with your weeknight meal,” he said. “Or [a beer for] the 50% of the population who barely drinks at all.”

Among those coveted consumers are Generation Z drinkers, those ages 21-24.

Gen Z is consuming less alcohol and drinking it less frequently than older generations, according to Lindsay Kunkle, FTI Consulting senior director of digital and insights, and Peter Rose, senior partner of Kantar’s consulting division.

One-in-fi ve (22%) Generation Z consumers surveyed in 2021 said they never consume alcohol – a +5% increase compared to millennials surveyed at the same age. One-quarter of Gen Z consumers are drinking alcohol weekly (17% less than millenials), and 6% consume daily (7% less than millennials).

Gen Z’s formative years have been shaped by 9/11, an encompassing digital world, the COVID-19 pandemic and more, according to Kunkle and Rose. Those events have helped shape Gen Z’s perspectives and what they want as both consumers and employees.

“We’re seeing a generation that – not just from a workplace standpoint, but from a consumption standpoint – is going to be trying to align with brands that’s values are quite similar to their own,” Rose said.

As employees, Gen Z is looking for value in work over monetary gain, leading to what has been referred to in the past two years as the “great resignation.” However, Kunkle said this movement should be viewed as a “great reshuffl e.”

“They are looking for careers that make them happy, not necessarily the most possible money,” she said. “And they’re looking for a job, a career, that refl ects their own personal identity.”

Brewers aren’t the only ones looking to cater to Gen Z consumers. Retailers told the Brewbound team that they’re actively courting them.

Jason Murphy, Buffalo Wild Wings beverage product and program innovation manager, said he’s exploring different beverage offerings beyond beer to better meet those consumers’ needs.

“Low- and no-alc has a huge opportunity to drive sales in our sports bars next year, not just in beer, but also in spirit-free drinks [and] mocktails,” he said. “That category has a lot of runroom for us, and it’s something that our guests have surveyed back to us and told us that they place a lot of importance on when they come to have a visit at Buffalo Wild Wings.”

With more than 1,200 locations in the U.S., Murphy said Buffalo Wild Wings has to be even more selective with what products it chooses for its tap handles.

“Most of the products that are being pitched to us right now are hard seltzers and imperial IPAs, or things chasing off-premise trends,” he said. “I understand why that’s happening, but for me, I only have 22 handles. There’s not much I can do with a 15th hazy IPA and 100th hard seltzer in my set, so I’d like to see more innovation in the beer space.”

Mary Guiver, Whole Foods global senior category merchant for beer and spirits, stressed the importance of brands knowing who their shoppers are and why their products meet those consumers’ needs.

“They have to really focus on the high-level takeaways around what makes their product special, whether that’s metrics around topperforming items or brands in the market in their category, or trends, or capturing share of a category,” she said. “Those have been historically things that we asked for. If not that, then really showing up with some whitespace items that are really unique. If not that, then the Whole Foods ethos around something that you’re doing beyond the product can really get us time with you one-on-one.”

Funkytown Wins 2021 Pitch Slam Competition

Chicago’s Funkytown Brewery won the 2021 edition of Brewbound’s Pitch Slam Competition, presented by O-I.

Funkytown, the second Black-owned brewery in Chicago, beat fi ve other semifi nalists, judged by a panel of industry experts. In a four-minute pitch, childhood friends and cofounders Richard Bloomfi eld, Zachary Day and Gregory Williams detailed how their offerings “meet the needs of the fi rst time craft beer drinker.”

“We’re using homebrew as an opportunity to gather feedback from Black people, women and other minorities to see what smells and tastes based on the palate,” Bloomfield said. “The feedback we were able to gather from these underserved groups is what drives our approach for brewing and branding.”

Funkytown has four beers: Hip-Hops and R&Brew American pale ale, Woo-Wap-Da-Bam American amber ale, Cuffi n’ Season Irish red ale, and New Year, Who Dis oatmeal milk stout. All beers are between 5.5% and 5.8% ABV, and feature local references in their label art.

“These different styles enable us to have a competitive price point that doesn’t turn someone away but provides an entry point for clients and beer consumers,” Day said. “On one end, we’re offering an entirely different world for the people within our culture, and another offering an entirely different culture in the beer world.”

Bloomfi eld, Day and Williams started homebrewing in 2017, and were inspired to start their own brewery two years later after attending Fresh Fest (now Barrel and Flow), a beer festival showcasing Black-owned breweries in Pittsburgh, Pennsylvania. Funkytown launched in October 2021 through the Pilot Project, a Chicago-based brewery incubator.

WHAT

Natural Products Expo West 2022

WHERE

Anaheim, Calif. Anaheim Convention Center Anaheim Hilton

WHEN

Education and Events: March 8-12, 2022 Trade Show: March 9-12, 2022

WHO

More than 300 beverage brands and approximately 60,000 attendees

ALPHABETICAL EXHIBITOR LIST

Exhibitor Booth

82 Labs, Inc. N113 A Game Beverages INC 118 a2 Milk N728 Acai Roots 1925 Agua Bonita 142 Alexandre Family Farm 2690 AlkaH2o U.S.A LLC N1242 Alkaline88, LLC N441 ALO Drinks by SPI West Port, Inc. 461 ALOHA N208 AMAZ 5151 American Yaupon Association N1514 Amy & Brian Naturals N1017 APAX USA, Inc. 4249 Aqua 9+ Beverage Co. 181 Aqua ViTea N1049 Ardor Organic N2039 Ascent Protein N1114 Athletic Brewing Company N2108 Athletic Brewing Company 211 Aura Bora 5649 B SWEET BEVERAGE CO. N1342 Bala Enzyme, Inc N1945 Barsotti Family Juice Company N915 Beliv Company N1725 Better Booch 4955

Exhibitor Booth

Big Watt Beverage N1333 BLK International, LLC N909 Blue Monkey 5407 Blue Skies USA, Inc. 5727 Blue Stripes Urban Cacao 5284 BlueTriton Brands 918 Blume Beverages, LLC 2670 Boomerang Energy, Inc. 5791 Bragg Live Food Products, LLC N1802 Bragg Live Food Products, LLC 5315 BrainJuice N1016 Brew Dr. Kombucha 5157 Brooklyn Food & Beverage, LLC 583 Buddha Brands N505 Bulletproof 5666 Califia Farms 921 Canopy Growth USA, LLC 4783 CanWater N636 Caribe Juice Inc 130 CBD Living 3211 CELSIUS N1128 Ceves Beverages, LLC N537 CForce Bottling Company N100 Chameleon Cold-Brew or Chameleon Organic Coffee 1805 Cherry Central N1418 CLEAN Cause 2124

Exhibitor Booth

Clear Cut Phocus

N2318 Cloud Water Brands N1430 Coca-Cola North America Group 739 coco5 N509 Cocobear Inc. N1270 Copper Cow Coffee N2012 Counter Culture Coffee 5536 Crafted Brand Company, LLC N938 Crystal Geyser Alpine Spring Water 1588 Culture Pop Soda 5197 Cure Hydration N143 Cusa Tea N2005 DAH! 5096 Danone North America 5416 Danone North America 1517 Danone North America 1421 Danone North America 1317 Danone North America 1417 Danone North America 1617 De La Calle Tepache N2044 Death Wish Coffee Company 2664 Defy 5275 Diabolo 904 DIVAS drink U.S. Inc. 4937 Doctor D's Sparkling Probiotic N2328 Dream Water 3920

BevNET, NOSH and Taste Radio will be interviewing, broadcasting and filming throughout the event. If you’re attending or exhibiting, let’s connect! Reach out at news@bevnet.com, news@nosh.com, or ask@tasteradio.com

Exhibitor Booth

DRY N1013

EB Beverages Elements Drinks

373 N2000

Elite Naturel USA, LLC

1810 Elmhurst 1467 Epicurean Food & Beverages N239 Essentia Water 814 Eternal Water 5123 Europa Sports Products 5018 Evamor Products, LLC 1478 Evolve 1117 Fentimans USA, Inc N1321 Flow Alkaline Spring Water 5448 Flow Alkaline Spring Water 5452 Forage Kombucha 5294 Forager Project 5062 Four Sigmatic N545 Free Rain N544 Genki USA, Inc. N515 Ginger People, The 342 Ginger Shots, LLC 5074 Ginseng Up Corp. N1338 GoHydrate Inc. 166 Goldthread Tonics N1731 Good Crop, Inc./ Sofresco N1339 Good Idea Inc H434 Good Karma Foods 5279 GoodBelly by NextFoods N1047 GoodSport Nutrition 4557 Goya Foods 1488 GREEN COLA NORTH AMERICA LLC N1652 GURU Beverage 2234 Harmless Harvest 5261 Harmless Harvest 5262 Harney & Sons Fine Teas 2089 Hart Dairy 1685 Hawaii Volcanic Beverages N1038 Hawaiian Springs, LLC 1054 Health-Ade Kombucha 5332 HealthVerve Food Manufacturing USA 1486 Hella Cocktail Co. N1949

Exhibitor Booth

Hello Bello, Tiller and Hatch, Taffer's Mixologist HFACTOR High Brew Coffee Hint, Inc. HOP WTR 2983

N731 5337 5022 N2334

Hoplark, LLC

5340 HumanCo N835 HUMANITEA Company 5734 Humm Kombucha N919 Hydrant 5292 Icelandic Glacial 5440 ITO EN (North America), Inc. 5508 Java Trading Coffee N744 Jayone Foods, Inc. 972 JJ Martin Group, LLC 2553 Jones Soda Co. 966 Just Made Foods, LLC N1536 Karma Water 611 KeVita Drinks® 915 Kill Cliff, Inc. 5369 Kokomio N1827 Kor Shots N520 Kuli Kuli Foods N1636 L.A. Libations 5043 L.A. Libations 5044 L.A. Libations 5053 LaCroix Sparkling Water 1205 Lakewood Organic Juice Company 1936 Lavazza Premium Coffees Corp 2527 LIFEAID BEVERAGE COMPANY 5162 Lifeway Foods, Inc. 1431 LiveMore Organics 2003 LOL Juice, LLC N1314 LOOP MISSION N246 Machu Picchu Energy N2048 Malibu Mylk N1344 MALK Organics 1804 Mananalu N1736 Manda Fermentation USA 693 Marquis 2612 Matchaful N2138

Exhibitor Booth

Mattoso Extratos Naturais LTDA 1793 Mayawell N2041 Meyenberg Goat Milk Products 1647 Milkadamia N223 Milkman Milk 4900 Minor Figures N1238 Mixed-Up Mules N248 Molson Coors Non-Alc 5036 Mori Leaf N2143 Mortal Kombucha N1112 Natalie's Orchid Island Juice Company N1719 Naturli' Foods A/S N1620 Ninth Avenue Foods N2124 Nirvana Water Sciences N2131 Nixie Sparkling Water 5474 North Coast Organic 2191 NovaNaturals: Steaz, C20 and Mineragua 4975 Numi Organic Tea 2580 nutpods 5743 Nuun Active Hydration 5102 OATLY 527 Oatnestly N912 Oaza cold Brew N446 Ocean Spray Cranberries Inc. 1472 Odyssey Elixir N1341 Omni Bev 182 One8 Health Brands, LLC N2205 Open Water 5489 Orangina N1632 ORGAIN 2037 Organic Valley 1737 Organifi N1708 OXIGEN Beverages (USA), Inc. N613 Pain Drink, Inc. 4384 Panos Brands 761 Partake Brewing N2347 PATH N747 Pickle Juice 5327 Picnik 5217 PIRQ 5296 Planet Oat 5040

Exhibitor Booth

Pocas International Corp. 1973 Polar Beverages, Inc. 791 Pop and Bottle, Inc. 5078 poppi 5288 Positive Beverage 354 Pressed Juicery N1648 Protein2o N931 Proud Source Water N1302 Pura Coco N536 Pure Rose N403 Purps N1269 RAMBLER N214 RAW FARM by Organic Pastures Dairy 692 REBBL 5584 Recess 4959 RECOVER 180° N1037 RED ACE ORGANICS 4427 Reed's, Inc. 413 Remedy Drinks N1942 Remedy Organics N2002 Reneva Collagen Drink 3508 Revive Kombucha 5280 REZ Plant-Based Hydration N1444 Riff N1133 RIOT Energy N1552 Ripple Foods N646 RISE Brewing Co. 5135 Rishi Tea & Botanicals N620 Ritual Zero Proof N1401 ROAR Organic 5594 Rowdy Mermaid 4943 Saint James Brands 2465 Sambazon, Inc. 2123 Sanzo N2311 Sarah's Homegrown 228 Say When Beverages N1730 Seeds of Wellness - SOW by Benexia 5146 Shaka Tea N2129 Shine Water, LLC 5398 Shine Water, LLC 5497 Simple Foods Co., Ltd. N1735

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Smart Juice 2110

SMARTFRUIT INC So Cool Brands Inc Soda Press Co.

227 N542 N1746

Som Sleep

5335 Sound N746 Spindrift Beverage Co., Inc. 5430 Spinning Wheel Brands 5194 Sproud N2132 Square One Organic Cocktail Mixers 2491 Squeeze Dried, LLC N944 SuckerPunch Gourmet N217 Suja 2414 Sun Tropics 5558 Sunwink N240 Super Coffee N1800 Swoon N2013 Synapse N1135 Tabletree Montana N1449 Taika N1900 Take Two 231 Tampico Beverages N1407 Taste Nirvana Int'l, Inc. 4944 Tea-Biotics Kombucha 5265 Teaonic N222 teapigs N1524 Teeccino 2017 Thaiwala 5726 The Bu Kombucha N2349 THE LEMON PERFECT COMPANY 5107 THE NOT COMPANY N1429 THE OTHER SIDE OF COFFEE 1767 The Republic of Tea 1479 The Vita Coco Company 435 Three Trees 5357 Tiesta Tea 5601 Topo Chico 749 Torani N1816 TOST Beverages 170 TRIP 5248 True Nopal Cactus Water 5316 True North 709

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Try MY T, LLC TURVEDA Prebiotic Herbal Sodas & Tea Twrl Milk Tea Ü Calming Co. UGLY N2028

N432

N1717 N2326 N237 Ultima Replenisher 610 Uncle Matt's Organic 4958 Unique Beverage Company, LLC N2335 Upstate Elevator Supply Co. 2786 Verve Coffee Roasters 5150 Vina N2040 VitaCup, Inc. N2018 Vital Proteins N804 Vital Proteins 3215 VitaNourish N2249 Vive Organic N2025 Waiakea Hawaiian Volcanic Water N317 Waiakea Hawaiian Volcanic Water 5423 wanu water, Inc. 5633 waterdrop Microdrinks, LLC 5762 Waterloo Sparkling N228 Wave Soda N1121 Wellbev LLC 2419 WellDrinks USA LLC 1075 Weller 5060 Whole e Nature N221 Whole Harmony LLC N2307 Wild Noni Natural Juice 906 wildwonder 5652 Win Soon, Inc. DBA Epoca 2417 Wize Tea N745 WYLD CBD 2793 XicamaTM N2043 Zeal Grass Milk Creamery 1592 Zen Beverage LLC N1120 Zenify N1147 Zest Tea N1021 Zevia, PBC 5007

Each year, BevNET’s annual Best Of awards honors companies, brands, individuals, products, ideas and trends from across the dynamic and ever-changing beverage landscape.

After the unprecedented challenges of a global pandemic in 2020, this year saw the beverage landscape coping with changing conditions and new, often uncomfortable realities. As the arrival of COVID vaccines helped push the industry back towards overall growth, supply chain gridlock, labor shortages and scarcity of materials threatened to paralyze it once more, compounding with economic inflation and uncertainty over new variants of the coronavirus. Yet, as often happens, those issues sparked the innovative and resilient spirit of entrepreneurs from across drink categories as they continued their relentless pursuit of progress. That meant taking on the challenge of reinventing categories like soda and tea, or carving space for entirely new ones, like tepache. It meant using tools like TikTok to bring consumers closer to the personalities behind their favorite drinks, or turning a canned water brand into a boldly funny, proudly counter cultural voice for a new generation of drinkers. And it meant turning a decade of hard grinding and tireless hustle into a historic, deeply impactful company exit, as with BODYARMOR’s eight-figure sale to The Coca-Cola Company.

The winners of BevNET’s Best of 2021 Awards embody that spirit and drive, combining inspiration with effort, style, dynamism and personality. Backed by the confidence and enthusiasm from having these brands, products and leaders at the helm, the beverage industry is ready for whatever surprises 2022 might have in store.

BRAND OF THE YEAR Super Coffee

Super Coffee is moving fast, achieving a $400 million valuation this year as it continues to draw investors, distributors, retailers and consumers to its own brand of functional hustle. The company, founded by three college-age brothers, is loaded up for the stretch run, with more than $100 million in new investment from its latest raise.

But beyond the numbers, it’s the look: every day new cans of Super Coffee are appearing on store shelves in both big chains and independents; there’s a pervasiveness to the brand’s growth that has a parallel arc to some of the other big independent brands out there that found their formula and started executing it on the street and in the boardroom. Monster, BODYARMOR, and Vita Coco all hit periods of hyper-growth and it’s clear that Super Coffee has entered that phase. What the ultimate outcome for the company will be is for its founders, investors, and the market to decide, but this was the year that Super Coffee became a fully realized presence for a broad set of consumers and a necessary product for retail customers as well. With AB InBev’s distribution muscle and an increasingly potent marketing operation, this brand has reached a new plateau, all signs are pointing up, and the engine is roaring.

PERSON OF THE YEAR Mike Repole, Chairman and co-founder, BODYARMOR

Mike Repole — and an experienced team of longtime associates — pulled off a rare career double this year with the sale of BODYARMOR to the Coca-Cola Company. That created a new category of entrepreneur, one who has twice sold startup brands for more than $1 billion. There are other entrepreneurs who have pulled off multiple sales, of course (BODYARMOR Co-Founder Lance Collins among them), but the price tag for Repole’s labor is indicative of the scale he’s able to bring to brands that become permanent parts of the industry. That’s a good year for sure, but what underscores the title of Person of the Year is that Repole has also spread the wealth and success throughout the company and throughout the community. Estimates are that more than 40 core employees at BODYARMOR have become millionaires through the sale — something that resonates within the entrepreneurial culture because of its emphasis on hustle, ingenuity, and team loyalty. Beyond that, Repole, already a major fi nancial contributor to civic institutions like St. John’s University, immediately followed news of the Body Armor sale with news of a $50 million donation to the Memorial Sloan Kettering hospital to fund cancer research. Repole’s teams are willing to take on the hard task of building brands his way because they know that no one will work harder than him for the same end, and that he won’t simply rely on superior skills and vision when drive is the real difference-maker. This year, he was an easy choice for person of the year.

BEST MARKETING Poppi’s TikTok Case Study

One Friday night in January, around 10 p.m., Poppi co-founder Allison Ellsworth was sitting in her Texas home when the inspiration struck her to record a quick impromptu video for her brand’s TikTok profi le. She quickly discussed the prebiotic soda company’s founding story and its game changing appearance on Shark Tank (which netted an investment from Rohan Oza and his fi rm CAVU Venture Partners). As Ellsworth tells it, she spoke briefl y but honestly, tying the brand’s journey to her own. The next morning, the video was already a viral hit and by Sunday the company had sold over $75,000 worth of product on Amazon. As of December 2021, the video had over 17.5 million views and 475,000 comments from consumers. Poppi was able to use its initial success to populate its email contact list, going from next to no subscribers in December 2020 to over 200,000 in months, but the company has not slowed down its social media marketing. The brand has posted to TikTok over 100 times since (on occasion striking the right nerve and getting over 1 million views) and Ellsworth remains the main star and face of the company. “Nowadays, that’s what the consumer wants, right? They want to connect with a real human, they don’t want the high gloss, they don’t want the ad in your face,” she told BevNET earlier this year.

With so many companies striving for a viral hit on platforms like TikTok and Instagram, Poppi has shown that the secret isn’t always to think, but to feel. Ellsworth’s on the fl y video may not, and probably can’t be replicated (at least not exactly the way she did it), but brands can learn from the moment how the power of authenticity, passion and a founder’s connection to their company can resonate with consumers and put a startup into the spotlight.

RISING STARS Liquid Death

When Liquid Death began raising money through Indiegogo in 2017 with a video claiming water as the deadliest fl uid on Earth and commanding consumers to “Murder Your Thirst,” many were left wondering: Is this a joke? Well, after nearly three years on the market, the answer is a fi rm ‘Yes and No.’ The recipient of BevNET’s 2019 Best Marketing award, Liquid Death established its name through genuinely hysterical and provocative advertising campaigns that have continued to roll out at breakneck pace. From gimmicky headline grabbers like giving away free cans in exchange for consumers’ souls to more recently releasing a 45-minute horror movie on Amazon Prime, that marketing prowess -- driven by the vision of co-founder and CEO Mike Cessario -- is but only the support structure for a legitimate business model. Liquid Death has rebuked any notion that it’s merely a novelty by building an omnichannel brand around mountain spring water in a tallboy can, all while wielding sustainability bonafi des like no other; has any phrase summed up the beverage industry’s shift towards green packaging better than “Death to Plastic?” But the company has also made a series of moves in the market, securing an exclusive partnership with the country’s largest live event promoter, raising over $125 million in capital, and building out its leadership team with experienced c-suite and director hires. How much further can Liquid Death take this concept? It’s hard to say, but take this brand as a joke at your own risk.

Hoplark HopTea

In 2018, speaking as one of 12 competitors in BevNET’s New Beverage Showdown 16 pitch slam, Hoplark HopTea founder and CEO Dean Eberhardt said he believed his innovative new brand was helping to create a new category for non-alcoholic hops-infused drinks. Three years after winning that competition, Hoplark itself is thriving; building its national distribution network and releasing a steady stream of fl avor innovations that lean into the brand’s craft beer styled drinks through unique combinations of hops and teas. The brand’s 2020 sales were 85x its 2018 numbers, and as of this March the brand was reporting exponential growth curves, also doubling its brewery capacity to meet demand. But not only is this Colorado-based startup that dares to play in two different sets of the store living up to its promise, the category Eberhardt predicted is beginning to grow around it. Big name brewers are investing in and creating their own non-alc hop drinks and teabased competitors are entering the market, leaving Hoplark as an early leader and cementing its status as a trailblazer.

Cann

In these very early days of the cannabis beverage market, the landscape remains a bit hazy. Despite the prodigious growth numbers, it remains a minor slice of the market, a still largely inaccessible space entangled in differing state regulations and uneven levels of consumer awareness. Yet if there’s a brand that symbolizes both how far the concept of a weed-infused drink has come and the tantalizing potential that still lies ahead, it’s Cann. The self-stylized “cannabis-infused social tonic” captured our attention as the winner of New Beverage Showdown 17, but it’s now clear that the basic pitch — approachable, mildly dosed (THC and CBD) beverages made with natural ingredients and draped in sexy, playful branding — carries mainstream appeal: despite only being available in fi ve states, Cann is the top-selling cannabis beverage in California, and is on course to triple last year’s $3 million in revenue this year as it continues to expand into new legal markets. Innovation remains a key focus — see the caffeinated Peach Passionfruit Mate, launched in August, or next year’s planned introduction of the premium Cann Reserve line — for the company, but it’s the brand’s authenticity and clear sense of identity that has helped make cannabis drinks sexy, attracting partners like pop star Tove Lo, actress/investor Gwenyth Paltrow and national distributor Green Thumb Industries along the way. Though the story of cannabis beverages is still being written, Cann’s place within it as a pioneer is secure.

BEST PACKAGING United Sodas of America

Looking at a single can, United Sodas of America is instantly eye-catching, with its blend of clean minimalist design, all-caps label copy and bold, striking colors creating an instantly recognizable and unique look. Each can stands out on its own, which makes the seeing the kaleidoscopic colors across its 12 SKUs all the more effective in visually popping out on-shelf (or in the brand’s double-stacked variety packs). Talk about power in numbers.

Wildwonder

As the copy on the back of the label relays, Wildwonder tonics are inspired by founder Rosa Li’s Chinese grandmother, who would assemble healthy drinks in her home kitchen “with a symphony of wild herbs.” That idea is represented visually on the can’s front label, with its hero ingredients floating against a bright background and bold text directly in the middle. The overall effect is both inviting and unique, creating a functional drink that actually looks fun.

De La Calle! Tepache

Startup tepache brand De La Calle! invites new consumers into an emerging category with a bright and colorful visual aesthetic. Tepache is well known in Mexico where the fermented beverage has a long history, but as American shoppers are introduced to the drink it’s packaging like De La Calle! that will welcome them in.

BEST NEW PRODUCTS Taika Matcha Latte

Taika’s approach to functional, plant-based coffee lattes has thus far produced a strong stable of products, but its macadamia milk Matcha Latte shows that the company’s barista skills extend beyond cold brew. Working with an ingredient that can be notoriously difficult to integrate in an RTD product, Taika makes the organic ceremonial grade matcha sing, resulting in a drink that’s sweet without any aftertaste, with a creamy and smooth texture.

De La Calle! Tepache

Beyond its vibrant packaging, De La Calle! is a delicious product helping usher in a wave of new tepache beverages -- a sparkling, fermented Mexican drink made from water, turbinado sugar and pineapple rind. Its five SKUs that showcase different regional takes on the brew, including sweet and spicy flavors like Tradicional (Pineapple Spice) and Picante (Mango Chili) are all deserving of a Best New Product title.

Culture Pop

Founded by industry veterans Tom First, Andrew Guard and Mark Christou, Culture Pop’s approach to the probiotic “Pop” category has resulted in a line of tasty, functional beverages with bold flavor profiles like Orange Mango Chili & Lime and Wild Berries basil & lime, presenting a more complex (but still familiar) contrast with the nostalgic soda flavors found throughout the category. As an early entrant to a rapidly developing segment, Culture Pop has set itself apart by marrying a strong product with approachable branding.

Ghia Le Spritz

In the emerging non-alcoholic mocktail category, Ghia is making a powerful impression with its nonalcoholic aperitifs. Le Spritz, its RTD line packaged in 8 oz. cans, presents an impressive flavor profile that’s aptly reminiscent of a classic Aperol Spritz, but with its own unique twist through ingredients like white grape juice, yuzu juice and a variety of extracts. Bitter, sweet, light, complex and -- most importantly -- refreshing all describe this product.

Harmless Harvest Coconut Smoothie

Harmless Harvest has produced no shortage of great tasting coconut beverages over the past decade, and it’s latest coconut smoothie line is an excellent addition. Even more than its signature coconut water, this smoothie captures and accentuates the refreshing sweetness of fresh coconut without added sugar, resulting in natural hydration that’s both indulgent and functional, thanks to MCTs.

Holy Tepache

This year we saw plenty of gut-health focused beverage launches, however Austin-based Holy Kombucha’s Tepache line stands out for its flavorful spin on the traditional fermented pineapple Mexican beverage. In addition to hitting timely trends including with its use of pre- and probiotics, each SKUs of this functional beverage maintains the traditional pineapple base while capitalizing on distinct flavor profiles ranging from Ginger Hibiscus to Strawberry Lime. While Holy Tepache has embraced flavor and function it has also positioned itself as a better-for-you mixer making this beverage right on trend and easily one of 2020’s best new products.

Pop & Bottle Almond Milk Lattes

As dairy-free RTD coffees continue to flood the category, finding a point of differentiation has become an added challenge. However, Pop & Bottle’s Almond Milk Lattes stand out from the pack with its clean ingredient profile, no refined sugar and a variety of caffeine levels among the line’s seven SKUs. These plant-based lattes are made with only almond milk, dates, cold brew coffee and Himalayan salt and feature flavors ranging from a Classic Cold Brew to Matcha Green Tea. Between its low-sugar content and great taste, this latte is among the best we have tried in 2021.

Lyre’s Spirit Co. Premixed

Lyre’s premixed spirits perfectly execute a nonalcoholic take on traditional cocktail recipes with combinations ranging from an Amalfi Spritz to its innovative and limited-edition Dark & Spicy beverage. These “impossibly crafted” cocktails hold their own among the likes of non-alcoholic and alcoholic RTD cocktails with a distinct yet contemporary twist on buzz-worthy beverages, without the booze. As report after report continues to predict that non-alcoholic spirits are going to continue their climb within the beverage industry throughout the next year, Lyre’s core line of RTD alt-cocktails are definitely one to watch.

Rowdy Mermaid Adaptonic

Rowdy Mermaid’s first extension beyond kombucha is proof that this functional beverage brand has plenty of room to grow beyond its original category. While working on the innovation of Rowdy’s Adaptonic line, the brand tapped into its existing ingredient supply with the resulting liquid featuring fruit, botanical herbs and Reishi mushrooms as its primary ingredients. These sparkling immunity beverages come in four flavors including Ashwagandha Blackberry and Matcha Yuzu and, while they complement the company’s flagship Kombucha product, the Adaptonic line has made its way on shelf as a better-for-you, immune-boosting beverage.

BEST NEW SPIRITS PRODUCTS

Tip Top Cocktails Shaken

Last year we loved Tip Top’s launch line of ready-to-drink stirred cocktails and its new Shaken line (featuring classics like Margarita, Daiquiri and Bee’s Knees) is an equally brilliant collection. With a potent serving (24-26% ABV) and a sharp use of citrus flavors, the Shaken lineup is a fine addition to Tip Top’s portfolio.

SunDaze

In an ever-more competitive category, SunDaze has quickly distinguished itself as much by what it is not — another hard seltzer — as by what it is: a unique citrus juice-based cocktail made from a patent-pending fermentation process, complete with probiotics and vitamin C to go along with the 6% ABV in each 12 oz. can. Truly innovative yet at the same time firmly grounded in an approachable identity, we could enjoy SunDaze all week.

Onda

Tequila was everywhere in 2021 when it came to RTD cocktails, but Onda seemed to rise above a field that included several worthy contenders. Clean, refreshing, perfectly poised at 5% ABV/100 calories and available in a range of flavors made with real fruit juice, Onda is the tequila soda to beat right now.